Notes to Accounts of VMS Industries Ltd.

VMS Industries Limited is a public company domiciled in India and
incorporated under the provisions of the Companies Act. The company has
its primary listing on BSE limited.

During the year, the Company was engaged in the ship breaking business
and trading activities in metal scrap, coals, aluminum foil & other
inputs. However, as and when any surplus fund are available, the same
is given on interest to other parties and also invested in the shares
and securities to earn short term and long term capital gains.

2. Terms/rights attached to equity shares

The Company has one class of equity shares having par value of Rs. 10/-
each. Each shareholder of the equity shares is entitled to one vote per
share entitled to receive dividend as declared from time to time.

3. COMMITMENTS AND CONTINGENT LIABILITIES

Amount (In lacs)

Particulars As at As at
31st March, 2015 31st March, 2014

Claim agaist the company not
acknowledge as debts Nil Nil

Bank guarantee Nil Nil

Corporate Guarantee for Partnership 480.00 170.00
Firm

A. There is demand of Income tax for the A.Y 2007-08, A.Y. 2010-11 and
A.Y.2012-13 of 'Rs.523.57 lacsRs.8.99 Lacs and Rs.15.33 respectively
raised by Assessing Officer u/s 143(3). The company has filed appeal
before CIT. in the opinion of the Management the company has fair
chances of succeeding in the said appeal. therefor no provision has
been made for the said demand.

B. There is a demand from deputy commissioner of commercial tax
division -9 of Bhavnagar for F.Y.2009-10 was Rs.19,27,984/- & for
F.Y.2010-11 'Rs.4,72,252/-,both are standing against the 1st appeal
authority.

4. RELATED PARTY TRANSACTIONS

a) Transactions with Related parties as specified under Accounting
Statndard -18 issued by the Institute of Chartered Accountant of India-

5. In the opinion of the Board of Directors, Current Assets, Loans &
Advances have a value of realisation at least equal to the amount at
which they are stated in the Balance Sheet. Adequate provision have
been made in the accounts for all the known liabilites.

6. The balance of Sundry Creditors, Sundry Debtors, Loans & Advances
are unsecured, considered good and reconciled from subsequent
transaction and/or confirmations are obtained.

7. Previous years figures have been regrouped/rearranged wherever
necessary so as to make them comparable with current years figures.

Mar 31, 2014

1. SHARE CAPITAL

a. Terms/rights attached to equity shares

The Company has one class of equity shares having par value ofRs. 10/-
each. Each shareholder of the equity shares is entitled to one vote per
share entitled to receive dividend as declared from time to time.

Mar 31, 2013

1. Micro, Small and Medium Enterprises Development Act, 2006

a) Based on the information available with the company in respect of
MSME (as defined in the Micro Small & Medium Enterprise Development
Act, 2006) there are no delays in payment of dues to such enterprises
during the year.

b) As per information available with the Company about suppliers
whether they are covered under Micro, Small and Medium Enterprises Act,
2006. As on date, the Company has not received confirmation from any
suppliers who have registered under the "Micro, Small and Medium
Enterprise Development Act, 2006" and hence no disclosure has been made
under the said Act.

2. Earnings Per Share:-

The Company reports basic and diluted earnings per share in accordance
with Accounting Standard issued by the Institute of Chartered
Accountant of India. Basic earnings per share are computed by dividing
the net profit for the year by the Weighted Average Number of equity
shares outstanding during the year. Diluted earnings per share is
computed by dividing the net profit for the year by weighted average
number of equity shares outstanding during the year as adjusted for the
effects of all dilutive potential equity shares except where results
are anti-dilutive. Statement showing the computation of EPS is as
under"-

3. Capacity & Production:- The Company is engaged in Ship Recycling.
The ships recycling activity consists purchase of ships and its
dismantling. In view of above nature of business activities, the
installed Capacity cannot be ascertained.

4. In the opinion of the Board of Directors, Current Assets, Loans
and Advances have a value of realization equivalent to the amount at
which they are stated in the Balance Sheet. Adequate provisions have
been made in the accounts for all the known liabilities.

5. The balance of Sundry Creditors, Sundry Debtors, and Loans &
Advances are unsecured, considered good and reconciled from subsequent
transaction and/ or confirmations are obtained.

7. Information required in terms of part IV to schedule VI of the
Companies Act, 1956 is attached

Mar 31, 2012

1. Micro, Small and Medium Enterprises Development Act, 2006

a) Based on the information available with the company in respect of
MSME (as defined in the Micro Small & Medium Enterprise Development
Act, 2006) there are no delays in payment of dues to such enterprises
during the year.

b) As per information available with the Company about suppliers
whether they are covered under Micro, Small and Medium Enterprises Act,
2006. As on date, the Company has not received confirmation from any
suppliers who have registered under the "Micro, Small and Medium
Enterprise Development Act, 2006" and hence no disclosure has been made
under the said Act.

2. Earnings Per Share:-

The Company reports basic and diluted earnings per share in accordance
with Accounting Standard issued by the Institute of Chartered
Accountant of India. Basic earnings per share are computed by dividing
the net profit for the year by the Weighted Average Number of equity
shares outstanding during the year. Diluted earnings per share is
computed by dividing the net profit for the year by weighted average
number of equity shares outstanding during the year as adjusted for the
effects of all dilutive potential equity shares except where results
are anti-dilutive. Statement showing the computation of EPS is as
under"-

3. Capacity & Production:-

The Company is engaged in Ship Recycling and Off-shore activities. The
ships recycling activity consists purchase of ships and its dismantling
and the off-shore activities are in the nature of service industry. In
view of above nature of business activities, the installed Capacity
cannot be ascertained.

4. In the opinion of the Board of Directors, Current Assets, Loans
and Advances have a value of realization equivalent to the amount at
which they are stated in the Balance Sheet. Adequate provisions have
been made in the accounts for all the known liabilities.

5. The balance of Sundry Creditors, Sundry Debtors, and Loans &
Advances are unsecured, considered good and reconciled from subsequent
transaction and/ or confirmations are obtained.